TABLE OF CONTENTS

* MBA Questions Freddie Mac's New Underwriting Standards for Subprime Lending

* New Population Projected to the Year 2030

*  MBA Testifies Before Senate:  Market is Working, Benefiting Consumers and Increasing
    Homeownership

* NAMB Sets Ambitious Policy Agenda for 2007:  Mortgage Reform and Data Privacy Top
  List of Key Issues

* Annual Joint Mortgage Conference Recap (lots of pictures to see)

* Mortgage Applications Increase in Latest MBA Survey

* Introducing the Volunteers of the Education/Programs Committee

* Programs Scheduled

MBA Questions Freddie Mac's New Underwriting Standards for Subprime Lending

WASHINGTON, DC (February 27, 2007) - John M. Robbins, CMB, Chairman of the Mortgage Bankers Association (MBA) today issued the following statement in response to Freddie Mac's announcement of their new standards for subprime lending.

"Today's announcement by Freddie Mac that it will only purchase subprime mortgages - and mortgage-related securities backed by these subprime loans - that qualify borrowers at the fully-indexed rate will limit the product options and the access to credit for those individuals most in need, many of whom are first time, underserved or minority homebuyers.

The mortgage products that these new standards target are important financial instruments, crucial to helping borrowers get into homes and repair their credit.  Regulation that further limits consumer choice is unwarranted."

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 3,000 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mortgagebankers.org.

New Population Projected to the Year 2030
by the NH Office of Energy & Planning, 57 Regional Drive, Concord, NH 03301

January 2007 - The New Hampshire Office of Energy and Planning has just released new population projections to the year 2030 for the State and its counties.  If the projections’ assumptions prove accurate, about 250,000 people will be added by that year, for a total state population of 1,564,000.  The projections depict the ageing of the population through the projection period.  Currently 12% of the state’s population is 65 or older.  The projections show that by 2020, the percentage 65 or older may be 21% and by 2030 perhaps 28%.  

The updated projections reflect population trends since 2000.  The projections assume slower growth than the projections previously prepared by OEP in 2004.  The new projections’ total for the population in 2025 is 73,000 fewer than that of the 2004 projection.  Since 2000, the state’s growth has slowed from 19,000 persons per year to about 11,000 new persons per year.   The slower growth is due to incremental increases in the state’s out-migration since 2000, that is, the number of people moving out of state is increasing, while the in-migration rate remains essentially unchanged.  Even with this reduced rate of growth, New Hampshire is likely to remain the fastest growing state in the Northeast. 

The projections are broken down into age groups and show a markedly aging population.  Currently, NH has the sixth highest median age among states.  The advancing years of the large post-war baby boom is the primary, but not the only, reason behind the trend.  In the nineties, the state tended to attract older post-war baby boomers (people born in 1946 to 1964).  The 2000 census shows that NH had a slightly higher preponderance of boomers compared to the national age structure. 

Also contributing to the aging in NH is the dearth of young adults.  During the nineties, NH experienced a net out-migration of persons aged 20 to 24 and very low in-migration of persons 25 to 29.  Since 2000, those people aged 25 to 34 increased in the nation while they decreased by more than 7 percent in NH.  The relatively low numbers of young adults produce correspondingly lower numbers in persons of pre-school and school age.  The differences in age structure between the state and the nation are significant, but not dramatically so.  In 2000, persons aged birth to 14 accounted for 20 percent of the population in the US, while in NH it was just over 18 percent.  Besides migration patterns, New Hampshire’s low fertility rate plays a role in age structure.  The projections indicate a decrease in the population aged birth to 19 between 2000 and 2020 and increases after that year.   

Paradoxically, the age group 65 and over has not played a role in the aging of the state, relative to the nation.  Since 1960 this age group has not differed significantly from that of the nation.  This is likely to change as the preponderance of the state’s post-war boomers reach the age of 65 in 2011.     

The state's largest county is Hillsborough and it is expected to remain so during the projection period.  By 2030 the County could add more than 70,000 persons to its population.  Rockingham County, second largest, could add about 56,000 persons to its population during the period. 

Currently 53% of the State's citizens reside in Hillsborough and Rockingham Counties. While this proportion is expected to continue, Merrimack and Carroll will likely increase their share of the State's population somewhat.  Coos County has been slowly losing population since 1980.  The mild decline is expected to continue until 2010 followed by a period of modest growth.  Currently, Coos County accounts for 2.6 percent of the State's residents; this may decrease to 2.3 percent by 2030. 

On a percentage basis, Carroll County shows the greatest increase at 30 percent.   Merrimack County follows at almost 24 percent. 

Population projections are used by many government agencies to guide public policy and budgeting.  A frequent use is quantifying future special populations such as nursing home residents.  Projections have been used to estimate future demands on the court system, libraries, recreation facilities and transportation facilities.  They are used by business to gauge future markets and guide long-term investments.  Specific business uses include gauging future labor supply, demand on hospitals, and energy needs. 

The projections are available at: http://www.nh.gov/oep/programs/DataCenter/library.htm; (click on “projections”).  Copies of the projections are also available by calling the NH Office of Energy and Planning at 271-2155.  The office is located at 57 Regional Drive in Concord. 

The OEP is now turning its attention to producing population projections for the State's 234 municipalities. 

A summary of the state and county projections appears in the following tables: